Category Archives: AUD

“Printing dollars at home means higher inflation in China, higher food prices in Egypt and stock bubbles in Brazil. Printing money means that U.S. debt is devalued so foreign creditors get paid back in cheaper dollars. The devaluation means higher unemployment in developing economies as their exports become more expensive for Americans. The resulting inflation also means higher prices for inputs needed in developing economies like copper, corn, oil and wheat. Foreign countries have begun to fight back against U.S.-caused inflation through subsidies, tariffs and capital controls; the currency war is expanding fast.” – Jim Rickards, Currency Wars

Many consider deliberate currency devaluation to be a tool that can help jump start a nation’s economy. The aim of such a practice is to increase exports while encouraging domestic purchases by making goods outside of the country relatively more expensive.

However, like any good prisoner’s dilemma, this might be the case if only one country acted in isolation. The reality is that many major countries engage in the same policy, and the end result – as the infographic details – is a race to the bottom.

So far the “winner” in the race is Japan.
The BoJ has been rolling with the Abenomics plan for almost two years now and the results are in…

The BoJ’s balance sheet has since exploded in size and they also have the highest public sector debt in the world.

Anyone who is working and living overseas will definitely require an FX facility to transfer currencies between countries for international payments, investments etc.

Be proactive: Take the opportunity to save a lot of money with an on-line FX account for individuals and business FX accounts.

Once you have opened an FX account you, will be far better positioned to take advantage of currency & additional opportunities in the future.

Expatriates are in constant need of FX facilities for:

Transferring lump sums to buy property in a different currency

moving money on/off of the deVere platform

or making regular payments abroad i.e. for mortgage payments.

Hedging currency risk and exchange rates

As part of the an investment portfolio with deVere, we can now make sure that all your financial requirements, including foreign exchange, are met under one roof, via our new bespoke in-house currency service: deVere Foreign Exchange.

Australia is currently planning on raising the age of retirement to 70 years of age, which would make this the highest retirement age in the world. With advancements in technology and better health care readily available, many people are living longer and elderly populations are on the rise. Due to Australia’s forecasted budget deficit, pushing up the retirement age is thought to decrease the pressure on the state’s budget in the coming years.

As well as that may be, some Australians have been critical of this plan, believing that this will make it harder for young people to break into an industry, and leave older workers unemployed.

In Melbourne, Bernard Salt of KPMG doesn’t see it that way, saying that the current system is no longer appropriate for Australia today and that change is required for the economy to stay afloat.

Australia is unlikely to be the only country to continue raising the age of retirement. Already countries such as Norway and Iceland, have raised their retirement ages to 67.

Pensions are slowly slipping farther away all across the globe, with both taxpayers and pensioners suffering. Relying on the state to support you during retirement is becoming less and less attractive, leading elderly workers to take matters in their own hands and focus on their own personal retirement plan.

The Australian Government is to reform what it says is the punitive taxation of excess superannuation contributions.

At present, superannuation contributions that exceed the non-concessional contributions cap are taxed at the top marginal tax rate. The Government says that as the contributions come from income that had previously been taxed, this can take the overall rate up to 93 percent.

The Government has now released details of the changes announced as part of Treasurer Joe Hockey’s first Budget. The aim is to ensure that the treatment of excess concessional and non-concessional contributions is broadly consistent and that inadvertent breaches of the non-concessional contributions cap do not incur a disproportionate penalty.

For any excess contributions made after July 1, 2013, which breach the non-concessional cap, the Government will allow individuals to withdraw those excess contributions and associated earnings. If an individual chooses this option, no excess contributions tax will be payable, and any related earnings will be taxed at the individual’s marginal tax rate. Individuals who leave their excess contributions in the fund will continue to be taxed on these contributions at the top marginal rate.

Disclaimer

The viewpoints and opinions expressed do not take into account any particular individual's investment objectives, financial situation, political agendas or religious beliefs. My views shared are my own which are derived from my personal experiences and influences and I am free to change them at any time, or realign to accommodate any new conditions and information available. I cannot guarantee the information to be free of mistakes and incorrect interpretations. Any financial topics must not be taken as advice and past performance is not indicative of future results. The information, including commentary, investment ideas, legal, tax and other specialised subjects, should not be relied upon as a substitute for independent professional consultation, which should always be explored before making any financial or legal decisions.